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Good morning, I'm Nathan Hager and I'm Karen Moscow. Here are the stories we're following today.
Karen, we begin with the latest in the US trade war with Canada and Mexico. Automakers are getting a reprieve. President Trump is giving a one month exemption from twenty five percent tariffs to Ford, General Motors and Stillantis, but White House Press Secretary Caroline Levit says the rest of the world still nice.
Reciprocal tariffs will still go into effect on April second, but at the request of the companies associated with USMCA, the President is giving them an exemption for one month so they are not at an economic disadvantage.
White House spokeswoman Caroline Levitt and Bloomberg's Kaylee Lines reports the automaker CEOs brought their concerns directly to the White House.
The concern here, of course, is that the auto sector is very vulnerable in a scenario in which tariffs are on our north of and trading partners. According to Bloomberg Economics, the US automakers, in particular for some key parts like
stink belts and airbags. For example, our reliance on the imports of those parts, some eighty percent from Canada and Mexico specifically, which is why you had the likes of Jim Farley saying recently that these kind of tariffs could potentially quote blow a hole in the industry.
Bloomberg's Kaylee Lynes in Washington.
And then another sign of tariff relief, Agriculture Secretary Brooke Rawlins tells Bloomberg the administration is also considering carve outs for some farm products from Canada and Mexico, including potash and fertilizer.
Well, Nathan, the president is set to meet with another group of business leaders, and we get the details with the Bloomberg's Lisa Matteo Lisa, good morning, Good morning Karen.
And we're talking about those big tech leaders, those behind the companies that are facing the possibility of import tariffs stricter export rules. Sources telling Bloomberg it includes the CEOs of HP, Intel, IBM, Qualcom. HP is actually the only tech giant who confirmed that they will meet with the administration on Monday to talk about trade policy US manufacturing. Now, this all comes as President Trump has called on Congress to get rid of the twenty twenty two Chips Act.
The Administration also looking for some input on its AI action plan, and that's to improve America's global AI dominance. Lisa Matteo, Bloomberg Radio.
Lisa, thank you.
On Capitol Hill, Republican senators have told Elon Musk he needs congressional approval for government cost cuts or they could be overturned in court.
We get the latest one that from Bloomberg's Amy Morris.
In Washington, senators suggested Elon Musk send a package of cuts to Congress for approval through a process that requires only a simple majority in both chambers. Republican Senator Lindsey Graham, I want to fix it.
Quickly, So what he said, I want to keep the momentum.
But from a political point of view, we need to take the work product of those and put it in a recision package.
Now, Musk met with Republican senators and is set to meet with House Republicans, but any effort to formalize the cuts will likely come after a March fourteenth government funding deadline in Washington.
More as Bloomberg Radio.
All right, Amy, thank you. Well. We turned to the markets now in a global bond sell off is deepening this morning, as traders gauge the impact of geopolitical volatility on growth and inflation, we want to get the very latest, so the Bloomberg's John Tucker, John, good morning.
Yeah, and strap in, Karen. This marks what could be a paradigm shift in the global market, and the catalyst is what's happening in Germany right now. Berlin, they reached agreement on a package to try and boost the Arizona's largest economy. So that means they have to sell debt,
lots of it. And as Europe has left to defend itself with a shrinking US commitment, they have to spend more and more on their military and as a result they are for now abandoning fiscal constraints, and this goes against the very fabric of the post war German psyche. The yield on the ten year German bond the Bund higher again this morning, up seven basis points as this bond route deepens. This follows the steepest rise in almost
thirty years now. The surprise from Germany comes as global bond markets were already grap with signs of persistent price pressures. It's led Japan's ten year barring costs to hit a sixteen year high. Right now in the US, the ten year the benchmark up two basis points. That is, right at four thirty. I'm John Tucker, Bloomberg Radio.
All right, John, thank you well.
Former Treasury Secretary Larry Summers is warning that voladile policy actions and rhetoric from President Trump proposing the biggest risk to dollar dominance in the world economy in a half century. Summers spoke with Joe Matthew and Kayley Lines on Bloomberg's Balance of Power.
These tariffs are a self inflicted supply shock wound higher prices, less competitiveness because businesses are having to pay more for all their inputs, and because they have to pay higher prices, less purchasing power for consumers, which means fewer jobs.
Down the road.
Former Treasury Secretary Larry Summers also points to the sellof in US stocks earlier this week as an illustration of investor concern about the direction of US policy.
Well in Europe, Nathan, EU leaders are holding emergency summit talks in Brussels to beef up their own military defenses and make sure Ukraine will still be protected. French President at Manumau Macron says he'll discuss using his country's nuclear capabilities to defend the continent.
Our nuclear deterrent protects US. It is complete, sovereign and French through and through. Since nineteen sixty four, it has explicitly played a role in preserving peace and security in Europe. But in response to the historic appeal of the future German Chancellor, I have decided to open the strategic debate on the protection afforded by our deterrent to our allies on the European continent.
French President of Manuel Macron spoke through an interpreter in a televised address to the nation and as.
That summit gets under wayne Brussels, Karen, there is word of a new air strike in Ukraine, just hours after the US froze. Some intelligence sharing with Kiev. Ukraine says a Russian ballistic missile killed four people and wounded dozens more in at a hotel in the central city of creevy Ria. Ukrainian President Vladimir Zelenski says humanitarian volunteers including citizens of Ukraine, the US and the UK had checked into that hotel before the strike.
But now we want to get the latest from the Middle East. Nathan President Trump is repeating his warning of hell to pay if a master does not release all its hostages from Gaza. But while the President is posting on social media, he sent his special hostage Envoy at the State Department, Adam Bohler, for direct talks with the
militant group in Doha. Bloomberg's Dan Williams reports the US has never had face to face contact till now with Hammas, which is which is designated rather as a terrorist organization.
On the one hand, perhaps he thinks this could work. Perhaps he thinks this is a creative way of getting Hamas to deliver the hostages, of wrapping up this now seventeen month old crisis in war. It could be a sign of running out of options. Indeed, holding talks with the group in a manner that other administrations may not have done would appear on the one hand, creative paths. On the other hand, a sign of vexation, of a lack of ideas. And I think now we'll have to see how Hamas response.
And Bloombergy Dan Williams reporting from Jerusalem. The White House says Israel was consulted on the talks.
Time now for a.
Look at some of the other stories making news in New York and around the world. And for that we're joined by Bloomberg's Michael Barr Michael good Morning.
Good Morning Caeron New York City Mayor Eric Adams was grilled by lawmakers on Capitol Hill on sanctuary cities. Adams was joined by a fellow Democratic mayors from three other sanctuary cities, Boston's Michelle wou Chicago's Brandon Johnson, and Denver's Mike Johnston. Houseover Side Committee Chairman James Comer, a Kentucky Republican, says that the cities only create sanctuaries for criminals. We cannot let pro criminal alien policies and obstructionist sanctuary cities
continue to endanger American communities. Adams also defended himself following the dropping of his federal charges from the Trump Justice Department. I think I was extremely clear, no qui pro quo, no agreement.
I did nothing wrong but serve the people of New York City.
Meanwhile, a new Quinnipiac poll has found Mayor Eric adams approval rating has dropped to an all time low. It shows that only twenty percent of New York registered voters give Adams a positive rating, and the same poll shows former New York Governor Andrew Cuomo leading the field of mayoral candidates. Cuomo leads with thirty one percent, while Adams is second with just eleven percent. There's were there could be a new candidate running from mayor of New York City.
According to several reports, New York City Council Speaker Adrian Adams will announce her candidacy for mayor in the next few days. Dozens of pro Palestinian protesters at Barnard College in New York City today. Demonstrators entered the school's library in Upper Manhattan calling for the reversal of the expulsion of three students for distributing flyers inside of Columbia University lecture.
Tensions boiled over as police drove out and encampment of protesters after a bomb threat was called in at the library of the occupied At least nine protesters were arrested. It comes as President Trump said he wants to cut the federal funding of colleges that allow what he called illegal protests. Global News twenty four hours a day and whenever you want it with Bloomberg News Now, Michael Barr, this is Bloomberg Karen.
Sorry, Michael Barr, thank you. Time now for the Bloombergy sports update, brought to you by Tri State OUDI. Here's John Stashauer. John, Good morning, Goo morning, Karen.
Rangers and Capitals at the Garden. Chance to see the team with the best record in the East and the guy who's on the verge of becoming the greatest goalscorer in NHL history. And sure enough, midway through the third period of the Rangers ahead two to one, Alex Sovechkin scored on the power play number eight eighty five as he chases winged Vsky. He's now nine from tying number ninety nine.
The game went to overtime and.
Bringing to the Silicia chas Time, Paulson and over Time.
Took two on one for Washington. Wilson and strolled strolled well pick Wait Wilson, Scots.
Tom Wilson the overtime Wells lossing.
Tick con TNT.
The Caps won three to two and Elsie If the Rangers making another trade before tomorrow's deadline, the rumor mill has the Islanders looking to deal Brock Nelson and or Kyle Palmery for the Devils. The worst fears concerning jack Us' shoulder injury, realize he's already had season ending surgery. The twenty three year old use his new jersey's top score Nick start a five game road trip tonight against the Lakers and the lebron James Luca Donzich combo. Lakers have
won seventeen to their last twenty. Golden stayed off the win over the next tonight, taking on the nets in Brooklyn. Last night in Boston, Celtics beat Portland. Peyton Pritchard scored forty three points and Derek White scored four. First time in Celtics history two players scored forty or more same game. NFL free agency kicks off next week, plenty of news ahead of it. The La Chargers have released five time Pro Bowl edge rusher Joey Bosa. Seattle release whiteout Tyler Lockout. Lockett,
who had been with the Seahawks for a decade. Another Seattle whiteout, dk Metcalp wants to be traded. The Raiders release quarterback Gardner Minshew and Las Vegas game Max Crosby a huge extension. Crosby is now the highest paid non quarterback in NFL history.
John Stashaw, We're Bloomberg Sports Kender Nathan.
Coast to coast on Bloomberg Radio, nationwide on Sirius XM, and around the world on Bloomberg dot Com and the Bloomberg Business app.
This is Bloomberg Daybreak. Good morning, I'm Nathan Hager.
President Trump admitted his tariffs could cause a little disturbance during his address to Congress this week, and now he may be offering a little relief, a one month exemption from auto tariffs for Canada and Mexico and a potential carve out for some agriculture as well. White House Press Secretary Caroline Levitt, though says this does not mean the President is losing focus.
The President told the truth, and he was realistic, and he levels that with the American people, and I think, frankly, it's very refreshing.
Pre Secretary Caroline Levit speaking from the White House this morning. We were joined by Terry Haynes, the founder of Pangaeopolicy, and Terry, are these poll backs that we're starting to see in the tariff assigned that President Trump is feeling a little disturbance.
Now, good morning, Good morning, Nathan. You know I'm feeling refreshed as the press Secretary said no, I think you know, I think it's a mistake for markets to think that Trump might link on tariffs. If he adjusts these things, the pattern is going to be. You know, what we've already seen is going to be an imposition of the tariffs and then a fine tuning of them. That is not That is not a signal the tariffs are going to happen and then they're going to go away. That's
an adjustment. And I know full markets are discomfited by that because they don't know what's coming next. And that's fair enough. But you know that that's going to be the policy going forward.
I think, well, are you thinking, then, Terry, that there could be adjustment to the reciprocal tariffs that the President has talked about The Commerce Secretary Howard Ludnik is saying are going to be taking effect April second.
I think some adjustment, Yes, the basic principle I think, I think stands. Remember that what they have the reciprocal tariff's purpose, I think is broadly speaking, is different than the individuals, let's say on Canada and Mexico. Those are explicitly about what I call geopolitical matters. In the case of Canada and Mexico. It's about the border. It's about drugs, fentanyl the like. The reciprocal tariffs are all about the idea that other countries are tariffing us, so therefore we're
going to tariff them similarly. And and the bid, I think is unspoken. The bid is to, you know, basically, have those tariffs go away. The idea is to produce freeer trade in the end, which you haven't heard a lot about yet, but I think you will. But that's all based on explicitly on the trade policy of others. And UH and Sectuary besn't likes to call this the next steps kind of UH data dependent, you know, dependent
on what's what those tariffs actually are. That's what the administration is studying right now.
Well, if these if this really is about immigration and drug flows over the borders, terry, why delay these for a month? I mean, can automakers really source more operations in the US within a month?
No?
If some of this has been leaked, and some of it some of it's been leaked, some of it's been stated explicitly, particularly by Commerce Secretary Lutnik. Uh, the idea is they're they're going to certainly understand that the automakers have the ability or need the ability to continue to
source the way they're sourcing. So there's that there's no illusion that the automakers are going to be able to produce more domestically, but they're providing a reprieve anyway in the hopes that more negotiations on the basic geopolitical issues continue to exist. But beyond that, and the other thing that's been leaked or teased is that USMCA, the deal between the United States, Canada and Mexico, should pick up
a lot of this stuff. So what I anticipate is that you'll probably see an early triggering of a renegotiation more broadly on us mc A.
Basis just thirty seconds left, Terry, do you think we'll see carve outs for tech when those leaders meet at the White House next week?
You know that wouldn't surprise me at all. The administration right now, I think is somewhat underpowered when it comes to having bobbins around who understand this stuff instinctively. And you know that's the lard the largely of the byproduct of being in the beginning of an administration. So the tech folks are going to be able to come in and actually make their case directly and provide a lot of useful insight that the White House I think doesn't have.
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